Sector
Electricity
Gas
Segment
Consumer matters
Retail
Categories
Instituted civil proceedings
Release date

On 16 December 2022, the AER instituted proceedings in the Federal Court alleging that AGL Retail Energy Limited and three other subsidiaries of AGL Energy Limited (together, AGL) failed to comply with the overcharging obligations in the National Energy Retail Rules.

The proceedings relate to AGL’s alleged conduct in relation to Centrepay payments deducted from customers receiving Centrelink payments.

The affected customers were using a portion of their Centrelink payments to help pay their energy bills but had stopped receiving services from AGL at the time of the alleged conduct.

The AER alleges that AGL, after becoming aware of overcharges, failed to:

  • notify the affected customers of the overcharges within the specified timeframe;
  • use its best endeavours to refund the overcharges within the specified timeframe; and
  • implement policies, systems and procedures to enable it to efficiently and effectively monitor its compliance.

The AER is seeking civil penalties, declarations, an order requiring the implementation of a compliance program and costs.

On 23 August 2024, the Federal Court found that between 9 January 2017 and 28 October 2021, AGL contravened: 

  • rule 31(1) of the Retail Rules on 3,531 occasions by failing to inform the affected customers of the overcharges within the specified timeframe, 
  • rule 31(2) of the Retail Rules on 3,531 occasions by failing to refund overcharges of $50 or more as required, 
  • rule 31(3) of the Retail Rules on 9,094 occasions on by failing to refund overcharges of less than $50 as required, and 
  • section 273 of the Retail Law on one occasion, in relation to the rule 31 contraventions. 

Read the judgment here

On 19 December 2024, the Federal Court ordered that AGL Retail Energy Limited and three other subsidiaries of AGL Energy Limited (together, AGL) pay a total pecuniary penalty of $25 million for breaches of the National Energy Retail Rules (Retail Rules) and National Energy Retail Law (Retail Law) by failing to inform and refund customers for overcharges obtained from Centrepay payments. 

The Federal Court also ordered three of the AGL subsidiaries to establish and implement a compliance program, and maintain it for 3 years, to improve the way they deal with overcharging of inactive customers related to Centrepay. 

The penalty decision was handed down on 19 December 2024. 

Read the judgment here

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AGL penalised $25 million for breaches of overcharging rules related to Centrepay payments

Court finds AGL breached overcharging rules in relation to Centrepay payments

On 19 August 2026, the Full Federal Court upheld an appeal by AGL Retail Energy Limited and three other subsidiaries of AGL Energy Limited (together, AGL) against findings and penalties imposed by the Federal Court in December 2024 for allegedly failing to comply with their overcharging obligations related to Centrepay payments. 

Read the judgment here

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On 16 September 2026, the AER filed an application seeking special leave to appeal to the High Court from the Full Federal Court’s judgment on 19 August 2026 upholding appeals by AGL Retail Energy Limited and three other subsidiaries of AGL Energy Limited.

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